Latest news with #Melio
RNZ News
7 hours ago
- Business
- RNZ News
Kiwi software company Xero to buy US payments platform for $4.1b
Xero says the new deal would be a significant change for the company. File photo. Photo: RNZ Accounting software giant Xero - based in Wellington but listed in Australia - is to buy an American payments platform operator Melio for US$2.5 billion (NZ$4.1b), as it looks to expand earnings in the United States. The deal will combine Xero's accounting software with Melio's payments platform in the key small and medium business market. Xero chief executive Sukhinder Singh Cassidy said the deal would be a significant change for the company. "Xero and Melio are highly complementary - together they complete the key jobs to be done for US SMBs (small medium businesses), extend reach across customer segments, provide both direct and syndicated offerings, and deliver multiple revenue drivers." She said the deal would double Xero's 2025 financial sales by 2028. The company earns the bulk of its earnings through sales in Australia and New Zealand, but has been challenged in trying to grow its US earnings. The acquisition is being funded by a sale of 10.5m new shares to big investors at A$176 each, a 9 percent discount to Xero's last traded price. That will raise about half of the purchase price, while existing Xero shareholders will be offered a total of A$200m worth of shares at a discounted price. Xero is also issuing shares to current Melio shareholders, as well as using some cash reserves, to be supplemented by some borrowing. Xero was the flag bearer for New Zealand's technology sector when it listed on the NZX in 2007, but switched to a single listing on the Australian stock exchange in 2018 , although it has maintained its nominal head office Wellington. It shed hundreds of jobs in a restructuring in 2023. - RNZ
West Australian
7 hours ago
- Business
- West Australian
Accounting software firm Xero buys New York's Melio for $4b in a bid to crack US market
Accounting software firm Xero will buy New York-based Melio Payments for $2.5 billion ($3.9b) in a bid to push deeper into the US market. Announced to the Australian Securities Exchange on Wednesday, the deal marks Xero chief Sukhinder Singh Cassidy's first major acquisition since she stepped into the top job in February 2023. Melio — founded in 2018 — has offices in New York and Tel Aviv, and provides accounting and payments software to small and medium-sized businesses in the food, beverage and construction sector. Melio has about 80,000 customers and processed about $US30b of payments in the 2025 financial year to generate $US153 million in revenue. Meanwhile, Xero provides accounting software for invoicing, payroll and other functions primarily to small business. Headquartered in Wellington, NZ, it also has a presence in Australia, the UK, US, Canada, Singapore and South Africa. In the US, it has 400,000 subscribers compared with one million in the UK and 2.3 million in Australia and New Zealand. The company said the combined business would significantly accelerate US revenue growth and presented an opportunity to more than double its group revenue in the 2028 financial year. Ms Singh Cassidy said it was excited to welcome Melio's world-class team and looked forward to working together to deliver shared goals. 'Adding Melio's world-class team, technology platform, and innovative (accounts payable) solutions to Xero enables a step change in our North America scale,' she said, adding it had the potential to help millions of US small and medium businesses, and their accountants, better manage their cash flow and accounting on one platform. 'Xero and Melio are highly complementary — together they complete the key jobs to be done for US SMBs, extend reach across customer segments, provide both direct and syndicated offerings, and deliver multiple revenue drivers.' Melio co-founder and chief executive Matan Bar said joining Xero was an incredible opportunity for the team to further its mission to reinvent the way businesses paid each other. Xero will fund the deal via a fully underwritten $1.85b institutional placement, $US360m of Xero scrip issued to existing Melio shareholders, a fully underwritten $US400m unsecured revolving credit facility, and $US600m of existing cash on Xero's balance sheet. The deal is expected to complete within six months.
Economic Times
7 hours ago
- Business
- Economic Times
New Zealand's Xero to buy US fintech Melio for $2.5 billion
The deal fills a gap in Xero's offer by adding payments to its accounting software while enabling both parties to scale up. Australia-listed, New Zealand-headquartered Xero dominates its home markets but has been trying to grow in the U.S. where it says it makes about 7% of sales. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Zealand accounting software giant Xero agreed to buy New York payments provider Melio for $2.5 billion, the companies said on Wednesday, accelerating the Kiwi firm's push in the U.S. market with one of the country's biggest outbound deal fills a gap in Xero's offer by adding payments to its accounting software while enabling both parties to scale up. Australia-listed, New Zealand-headquartered Xero dominates its home markets but has been trying to grow in the U.S. where it says it makes about 7% of deal "enables a step change in our North America scale and the potential to help millions of US (small-to-medium businesses) and their accountants better manage their cash flow and accounting on one platform", said Xero CEO Sukhinder Singh Cassidy in a forecast the buyout would double its 2025 financial sales by co-founder and CEO Matan Bar said he was "excited by our shared purpose to scale in the US and combine Xero's accounting capabilities with Melio's accounts payable and receivable solutions".Shares of Xero were suspended from trading on Wednesday as the A$30 billion ($19.5 billion) market capitalisation company asked institutional investors for A$1.85 billion to help pay for the purchase, but analysts gave a cautious endorsement of the deal."There is much to like in terms of bulking up US exposure with a leading, fast-growing payments player and longer term the proposed deal makes sense," said RBC Capital Markets analyst Garry Sherriff in a client note."It will take time to process the intricacies of the deal and the pathway forward."E&P analyst Paul Mason said the buyout price "looks pretty full for the stand-alone business but works if you think the company can pull off strategic synergies around greater distribution".
Time of India
9 hours ago
- Business
- Time of India
New Zealand's Xero to buy US fintech Melio for $2.5 billion
Live Events New Zealand accounting software giant Xero agreed to buy New York payments provider Melio for $2.5 billion, the companies said on Wednesday, accelerating the Kiwi firm's push in the U.S. market with one of the country's biggest outbound deal fills a gap in Xero's offer by adding payments to its accounting software while enabling both parties to scale up. Australia-listed, New Zealand-headquartered Xero dominates its home markets but has been trying to grow in the U.S. where it says it makes about 7% of deal "enables a step change in our North America scale and the potential to help millions of US (small-to-medium businesses) and their accountants better manage their cash flow and accounting on one platform", said Xero CEO Sukhinder Singh Cassidy in a forecast the buyout would double its 2025 financial sales by co-founder and CEO Matan Bar said he was "excited by our shared purpose to scale in the US and combine Xero's accounting capabilities with Melio's accounts payable and receivable solutions".Shares of Xero were suspended from trading on Wednesday as the A$30 billion ($19.5 billion) market capitalisation company asked institutional investors for A$1.85 billion to help pay for the purchase, but analysts gave a cautious endorsement of the deal."There is much to like in terms of bulking up US exposure with a leading, fast-growing payments player and longer term the proposed deal makes sense," said RBC Capital Markets analyst Garry Sherriff in a client note."It will take time to process the intricacies of the deal and the pathway forward."E&P analyst Paul Mason said the buyout price "looks pretty full for the stand-alone business but works if you think the company can pull off strategic synergies around greater distribution".
The Star
11 hours ago
- Business
- The Star
New Zealand's Xero to buy US fintech Melio for $2.5 billion
A person counts U.S. one-hundred dollar bills at a currency exchange office, in Santiago, Chile April 4, 2025. REUTERS/Pablo Sanhueza (Reuters) - New Zealand accounting software giant Xero agreed to buy New York payments provider Melio for $2.5 billion, the companies said on Wednesday, accelerating the Kiwi firm's push in the U.S. market with one of the country's biggest outbound deals. The deal fills a gap in Xero's offer by adding payments to its accounting software while enabling both parties to scale up. Australia-listed, New Zealand-headquartered Xero dominates its home markets but has been trying to grow in the U.S. where it says it makes about 7% of sales. The deal "enables a step change in our North America scale and the potential to help millions of US (small-to-medium businesses) and their accountants better manage their cash flow and accounting on one platform", said Xero CEO Sukhinder Singh Cassidy in a statement. Xero forecast the buyout would double its 2025 financial sales by 2028. Melio co-founder and CEO Matan Bar said he was "excited by our shared purpose to scale in the US and combine Xero's accounting capabilities with Melio's accounts payable and receivable solutions". Shares of Xero were suspended from trading on Wednesday as the A$30 billion ($19.5 billion) market capitalisation company asked institutional investors for A$1.85 billion to help pay for the purchase, but analysts gave a cautious endorsement of the deal. "There is much to like in terms of bulking up US exposure with a leading, fast-growing payments player and longer term the proposed deal makes sense," said RBC Capital Markets analyst Garry Sherriff in a client note. "It will take time to process the intricacies of the deal and the pathway forward." E&P analyst Paul Mason said the buyout price "looks pretty full for the stand-alone business but works if you think the company can pull off strategic synergies around greater distribution". ($1 = 1.5387 Australian dollars) (Reporting by Byron Kaye in Sydney and Rajasik Mukherjee in Bengaluru; Editing by Maju Samuel and Sonali Paul)
